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BHP Group Ltd
ASX:BHP

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BHP Group Ltd
ASX:BHP
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Price: 55.475 AUD -0.39%
Market Cap: AU$281.9B

EV/EBIT

9.4
Current
47%
More Expensive
vs 3-y average of 6.4

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
9.4
=
Enterprise Value
AU$300.9B
/
EBIT
$22.3B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
9.4
=
Enterprise Value
AU$300.9B
/
EBIT
$22.3B

Valuation Scenarios

BHP Group Ltd is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (6.4), the stock would be worth AU$37.63 (32% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-34%
Maximum Upside
+79%
Average Upside
12%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 9.4 AU$55.48
0%
3-Year Average 6.4 AU$37.63
-32%
5-Year Average 6.2 AU$36.56
-34%
Industry Average 12.5 AU$74.13
+34%
Country Average 16.8 AU$99.39
+79%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
AU$300.9B
/
Jan 2026
$22.3B
=
9.4
Current
AU$300.9B
/
Jun 2026
$25.7B
=
11.7
Forward
AU$300.9B
/
Jun 2027
$23.8B
=
12.6
Forward
AU$300.9B
/
Jun 2028
$23B
=
13.1
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
AU
BHP Group Ltd
ASX:BHP
282.8B AUD 9.4 19.4
AU
Rio Tinto Ltd
ASX:RIO
280.1B AUD 11.5 20
UK
Rio Tinto PLC
LSE:RIO
120.2B GBP 10.3 15.9
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
1.6T MXN 11.1 18.9
CH
Glencore PLC
LSE:GLEN
64.6B GBP 36.1 235.5
SA
Saudi Arabian Mining Company SJSC
SAU:1211
248.9B SAR 25.9 33.9
CN
CMOC Group Ltd
SSE:603993
433B CNY 10.1 21.3
UK
Anglo American PLC
LSE:AAL
42.9B GBP 16.2 -15.2
CN
China Molybdenum Co Ltd
OTC:CMCLF
52.8B USD 8.4 17.9
ZA
African Rainbow Minerals Ltd
JSE:ARI
46.7B ZAR -77.3 36.2
IN
Vedanta Ltd
NSE:VEDL
3T INR 11.2 21.1
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
AU
BHP Group Ltd
ASX:BHP
Average EV/EBIT: 15
9.4
6%
1.6
AU
Rio Tinto Ltd
ASX:RIO
11.5
9%
1.3
UK
Rio Tinto PLC
LSE:RIO
10.3
8%
1.3
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
11.1
7%
1.6
CH
Glencore PLC
LSE:GLEN
36.1
51%
0.7
SA
Saudi Arabian Mining Company SJSC
SAU:1211
25.9
4%
6.5
CN
CMOC Group Ltd
SSE:603993
10.1
N/A N/A
UK
Anglo American PLC
LSE:AAL
16.2
23%
0.7
CN
C
China Molybdenum Co Ltd
OTC:CMCLF
8.4
N/A N/A
ZA
A
African Rainbow Minerals Ltd
JSE:ARI
Negative Multiple: -77.3 N/A N/A
IN
Vedanta Ltd
NSE:VEDL
11.2
25%
0.4

Market Distribution

Lower than 75% of companies in Australia
Percentile
25th
Based on 1 236 companies
25th percentile
9.4
Low
0 — 10.7
Typical Range
10.7 — 24.5
High
24.5 —
Distribution Statistics
Australia
Min 0
30th Percentile 10.7
Median 16.8
70th Percentile 24.5
Max 6 797.5

BHP Group Ltd
Glance View

BHP Group Ltd., often perceived as a colossus in the world of mining, stands as a paragon of effective resource management and operational excellence. Originally rooted in Melbourne, this behemoth of a company has built an empire on the extraction and processing of essential raw materials. Its operations span the globe, with a portfolio primarily focusing on four pillars: iron ore, copper, coal, and petroleum. Each of these commodities serves critical roles in global industries—iron ore for steel production, copper for electrical systems, coal for energy, and petroleum for fuel and chemical products. BHP's extensive mining infrastructure and advanced technological integration enable it to efficiently extract and transport these materials to markets worldwide, capitalizing on scale, safety, and sustainability to enhance profitability. At the heart of BHP's financial engine lies its strategic emphasis on cost efficiency and expanding high-margin operations. The company systematically invests in innovation and development to optimize ore grades and extend the life of its mines, ensuring a steady stream of production that aligns with market demand. By hedging against the volatility typical of commodity markets through long-term contracts and judicious price management, BHP achieves a remarkable balance between risk and reward. Furthermore, the group's diversified portfolio mitigates exposure to downturns in any single commodity market. This approach not only fortifies its revenue streams but also positions BHP as a resilient entity amidst shifting global economic landscapes—a mining titan continually adapting to the minutes of time.

BHP Intrinsic Value
45.048 AUD
Overvaluation 19%
Intrinsic Value
Price AU$55.475
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